Sheng Siong Group: Solid Performance and Growth Prospects

Sheng Siong Group (SSG) has once again outperformed expectations with a robust third-quarter performance in 2024. The company reported an impressive revenue of S\$363 million, marking a 5% year-on-year increase, and earnings surged by 12% to S\$39 million. This strong performance brings the nine-month revenue and earnings to 77% and 81% of the full-year forecasts, respectively.

One of the key drivers behind Sheng Siong’s success is the strategic expansion of new stores combined with a higher comparable same-store sales growth. The company achieved a record gross margin of 31.3%, up by 1 percentage point year-on-year, attributed to an improved sales mix. Sheng Siong’s market share continues to grow, outperforming the overall retail sales growth in Singapore’s supermarket and hypermarket sector.

Looking forward, Sheng Siong plans to capitalize on its recent acquisition of Jelita Property, which includes Siglap V and Toa Payoh properties. This acquisition, valued at S\$50.2 million, is expected to open new revenue streams through rental income and the potential opening of a new store.

Overall, the company’s financial health remains strong, boasting a net cash position of approximately S\$300 million post-acquisition. UOB Kay Hian maintains a “Buy” recommendation with an upgraded target price of S\$1.93, reflecting the company’s consistent growth and expansion potential.

Oversea-Chinese Banking Corp: Bullish Trading Prospects

Oversea-Chinese Banking Corp (OCBC SP) is currently experiencing a bullish trading trend, with its stock price trading above the cloud, a key indicator of an uptrend. The stock recently rebounded from its previous low support level, maintaining a bullish crossover in the conversion and base lines.

Technical indicators such as the MACD also remain bullish, suggesting a potential increase in stock price. UOB Kay Hian recommends a “Trading Buy” with a target price of S\$17.55, while setting a protective stop at S\$15.89. The recommendation is supported by the institutional research team’s fundamental “Buy” rating and a target price of S\$21.00.

Investors are advised to initiate this trade if the stock hits the entry price range of S\$16.17 to S\$16.18 within three trading days, with an expected timeframe of one to two weeks.

First Resources: Positive Outlook with Strong Technical Indicators

First Resources (FR SP) also presents a bullish outlook, with its stock price trading above the cloud. The chart indicates a potential bullish conversion and base lines crossover, which could further drive the stock price upwards.

The MACD remains positive, reinforcing the bullish sentiment around First Resources. UOB Kay Hian has issued a “Trading Buy” recommendation, with a target price of S\$1.60 and a protective stop at S\$1.46. The institutional research team supports this with a fundamental “Buy” rating and a target price of S\$1.65.

Investors are encouraged to act if the stock reaches the entry price range of S\$1.49 to S\$1.50 within three trading days, with an anticipated timeframe of one to two weeks for this trading strategy.

Conclusion

The latest market report from UOB Kay Hian provides insightful analysis and recommendations for some of Singapore’s leading companies. With Sheng Siong Group’s strong performance and expansion plans, OCBC’s bullish trading prospects, and First Resources’ positive technical outlook, investors have ample opportunities to consider for their portfolios.

Stay informed and engaged with these expert insights, and consider these recommendations for potential investment opportunities in Singapore’s dynamic market landscape.